Quote:
Originally Posted by Andrew H.
It's not *generally* true that they don't make much money; as recently as 2 or 3 years ago they were making record profits. They've just barely made a profit the last couple of years due to expenses relating to expansion - opening distribution warehouses, but also developing new technology.
3 years ago, Amazon's stock was at 80. Now it's at 260. I don't think stockholders are complaining. (And Bezos is by far the largest shareholder).
Now whether people should be buying Amazon at that price is a different question.
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The warehouses look to be springboards for faster delivery. While I'm not sure they'll do same day delivery in too many markets, next day will be more common and easier/cheaper to achieve.
Investors see all those warehouses and staff and figure that they'll translate into more sales. They'll also translate into political power. (Which will come in handy to shut up the Schumers of the world.)
Added up, more revenue and a return to the early decade margins.